Rural Healthcare and PPP: How the Program is Helping Providers Serve their Communities (May 22, 2020)
Summary
An SBA news release, Release Number NR20-14, dated May 22, 2020, by Jordan Belser, Public Affairs Specialist, SBA Wyoming District Office, on how the Paycheck Protection Program (PPP) is helping rural healthcare providers. Margie Molitor, CEO of Hot Springs County Memorial Hospital in Thermopolis, says following CDC guidelines cut revenue 60 percent in April, and that a PPP loan arranged with Pinnacle Bank let the hospital and its three rural health clinics, with roughly 160 employees, keep payroll and avoid furloughs. Minnie Miller of Pinnacle Bank Wyoming says the bank has done more than $47 million of PPP loans in the community, and the release says more than $100 billion in assistance remains available.
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NEWS RELEASE
PRESS OFFICE
Release Date: May 22, 2020 Contact: jordan.belser@sba.gov
Release Number: NR20-14 Follow us on Twitter, Facebook, Blogs & Instagram
Rural Healthcare and PPP: How the Program is Helping
Providers Serve their Communities
By: Jordan Belser, Public Affairs Specialist, SBA Wyoming District Office
Rural communities across America offer a certain appeal – access to prime outdoor
recreation, tight-knit relationships and a slower pace. These communities also face their own
unique set of challenges, and often find creative ways to overcome them.
A smaller town means a smaller population, and businesses and organizations rely heavily on
recruitment to bring the best, most-qualified professionals to their area. That’s only half the
battle, though, as retention is key to economic survival.
This challenge is no more prevalent than it is in the healthcare sphere, where rural hospitals
and clinics depend on talented, qualified medical professionals that are willing to relocate to
their community. Losing these workers due to an economic downturn – such as the one our
country is facing due to the effects of COVID-19 – can be catastrophic.
“It’s certainly a challenge recruiting people to a small town because we are so remote,” said
Margie Molitor, CEO of Hot Springs County Memorial Hospital in Thermopolis, Wyo. “And,
though we’re thankful this hasn’t happened yet, if our community is severely impacted by
COVID-19, we’ll need those professionals here to take care of everyone.”
In addition to the hospital, Molitor’s organization includes three rural health clinics in Worland,
Basin and Thermopolis and employs roughly 160 people. Molitor says by adhering to CDC
guidelines, her institution experienced a 60 percent reduction in revenue in April.
“To be clear, eliminating elective surgeries and changing our operations in an effort to
preserve PPE (personal protective equipment such as masks) was absolutely the right thing to
do for our country,” Molitor explained. “But, it definitely had an impact, and we were faced with
the possibility of furloughing employees, as salary and benefits account for about 50 percent of
our expenses. If we had to furlough folks, we may very well have lost them for good.”
Molitor says the institution – a dual-status 501(c)(3) organization – worked with Pinnacle Bank
to learn about the Paycheck Protection Program (PPP) and prepare an application. When the
second round of funding became available, Molitor says their application was submitted the
same day.
“Pinnacle Bank was wonderful to work with, and they were with us every step of the way. We
were also incredibly lucky to have the SBA Wyoming team as a resource throughout this
process,” Molitor said. “The PPP allowed us to maintain payroll and keep our people here.
We’re the second-largest employer in Hot Springs County and naturally that makes us an
economic driver. Furloughs almost certainly would’ve caused a ripple effect throughout the
community.”
Lending institutions across the state have taken the charge to administer the program and
guide businesses and organizations from start to finish.
“The hospital here is a large employer, so of course we wanted to help them and their
employees. We’ve done more than $47 million worth of PPP loans in our community, and
every business is important in a town this size,” said Minnie Miller, Market President
(Thermopolis), Pinnacle Bank Wyoming. “And, working with a rural hospital came with a
different set of guidelines, but SBA staff were able to provide us with that information as soon
as it was available. That enabled us to get their PPP application processed very quickly, and
we’re proud to have played our part in helping that many people.”
As of today, there is still more than $100 billion in assistance available for Wyoming’s rural
businesses, health care providers, farmers, ranchers, nonprofits, and faith-based groups.
These funds are critical to retaining employees, aiding payments on essential bills, and
reducing economic injury.
“By making nonprofit hospitals eligible for forgivable loans, leveraged through the power of
private vendors, SBA is providing the capital and certainty health organizations need to retain
employees and continue services,” said Dan Nordberg, SBA Director of Rural Affairs and
Region Eight Administrator.
Molitor says outpatient surgeries have resumed and the clinics are now seeing patients in
accordance with CDC social distancing guidelines.
“We’re now getting back to the ‘new normal,’ and we’re in a much better place than we’d be if
we had to furlough employees,” Molitor said. “Our physicians and surgery staff are prepared to
mobilize if we do get busy with COVID-19 patients, and we continue to work closely with the
county’s health department.”
For additional resources on programs and resources in your community, visit
www.sba.gov/paycheckprotection.
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About the U.S. Small Business Administration
The U.S. Small Business Administration makes the American dream of business ownership a
reality. As the only go-to resource and voice for small businesses backed by the strength of
the federal government, the SBA empowers entrepreneurs and small business owners with
the resources and support they need to start, grow or expand their businesses, or recover
from a declared disaster. It delivers services through an extensive network of SBA field offices
and partnerships with public and private organizations. To learn more, visit www.sba.gov.
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